Dubai’s prime residential market has registered a 24.4 per cent year-on-year increase with over 6,000 residential transactions, till mid-November, according to a report. This amounts to over 6,000 residential transactions, each above AED 10m ($2.72m).
A report by Savills Middle East’s Dubai Prime Residential Market report attributed the growth to the UAE’s political stability, favourable business climate and tax-efficient structure.
The report also added that off-plan properties, aided by the launches in communities such as The Oasis, Palm Jebel Ali and Eden Hills, helped in the sale surge. There was also a great demand for larger, family-oriented homes during the period, which indicated ongoing wealth migration and the rising number of international buyers moving to Dubai.
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The majority of prime transactions were villas, though prime apartments in waterfront and branded developments continued to command higher prices. As for the customers, European buyers were the most active group, followed by Asian investors.
“Demand from global and regional high-net-worth buyers remains strong, supported by wealth migration, limited supply in established prime communities and the city’s continued evolution as a world-leading lifestyle and business hub,” according to Andrew Cummings, Head of Residential Agency at Savills Middle East.
Toppers
The report puts Dubai as the top hotspot destination globally for high-net-worth individuals.
The Oasis topped the villa communities with transactions over AED 10 million, with 1,024 villas being sold. Palm Jebel Ali came next with over 560 villas. With regard to apartment communities with transactions over AED 10 million, Dubai Harbour topped the list with 250 villas, while Dubai Downtown came second. Palm Jumeriah and Business Bay were also in demand.
The data from the Savills Residential Agency team revealed European buyers to be those most active in the prime market, with a 58% share of all transactions. Asia followed with a 23% share of transactional activity.
As for buyer sentiment, they include location, factoring in proximity to international schools and commutes, as well as amenities and privacy. With regard to average rates per sq. ft. for villa sales over AED 10M across various communities, Palm Jumeirah topped the list with 6,000 AED per square foot. Then came Jumeirah Islands and Dubai Hills Estate.